The factors are individualism, uncertainty avoidance, economic growth, relative firm size, corruption, and economic freedom. The objective of this research are detecting the practice of cosmetics earnings management in ASEAN and testing some factors that may have correlation with cosmetics earnings management. These practices are based on cognitive reference point theory. This is mainly done when the second digit of earnings is a big number, such as 9, so that a little upward rounding can change the second digit to 0 and lift up the first digit. PRADITA NARESWARI HILDA ROSSIETA Universitas IndonesiaĪbstract: Cosmetic earnings management is opportunistic management by doing little upward rounding in the second digit of the earnings to lift up the first digit by one point. SESI I/1 Pradita Nareswari dan Hilda RossietaĬosmetic Earnings Management in ASEAN Countries: Detection Method Using Benford’s Law
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